Answer

1. F

   Facts

   Banks report cash deposits that add up to ₹10 lakh or more in a year in non-current accounts. Your answer should show where the cash came from and whether that source is already in your return.

2. P

   Provisions and law

   • Sec 285BA, Income-tax Act 1961Banks, registrars, mutual funds and others report specified high-value transactions to the department.
   • Rule 114E, Income-tax Rules 1962 (now Rule 237, Income-tax Rules 2026)Lists the transactions and thresholds reported in the statement of financial transactions.
   • Sec 68, Income-tax Act 1961 (now Sec 102, Income-tax Act 2025)Unexplained credits in books can be taxed as income.
3. A

   Analysis

   Say you deposited ₹12 lakh from sale of old gold and earlier cash withdrawals. Keep the sale bill, withdrawal slips and any gift deed ready. If the source was already in your return, respond that the information is correct and covered. If the source is income you did not report, consider an updated return before a formal notice arrives.

4. C

   Conclusion

   1. 1List each deposit and its source.
   2. 2Gather proof such as withdrawal slips, sale bills or gift deeds.
   3. 3Respond on the Compliance Portal with the right option.
   4. 4If income was missed, plan an updated return.

Cash that cannot be explained can be taxed at a high special rate in an assessment.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.